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Prime Minister Narendra Modi gave a big boost to financial inclusion today at Talkatora stadium in Delhi as he launched India Post Payments Bank (IPPB). The payments bank will ride on the vast network of the postal department to provide financial services to the common people. Modi also launched 650 branches and 3,250 access points of the postal department across the country.

To simplify banking, PM Modi also launched the India Post Payment Banks mobile application. Addressing the gathering, Modi said the facilities offered by India Post Payments Bank will benefit the common citizens. He also said that bank & banking services will be available at every person's doorstep.

Narendra Modi also hinted at irregularities in sanctioning loans during UPA regime.

The once-ubiquitous postman was slowly receding from the national imagination due to emergence of faster means of communication over the past two decades. But now he will be the axis of the government's thrust take new-age banking to the unreached. The IPPB will use more than three lakh postmen and Grameen Dak Sewaks to provide doorstep financial services even in remote areas.

Set up us a 100% government-owned public limited company under the Department of Posts, IPPB is aimed at making banking easy for ordinary citizens. It will go live with 650 branches in addition to 3,250 access points co-located at post offices and around 11,000 postmen both in rural and urban area will provide doorstep banking services. It has permission to link around 17 crore postal savings bank accounts. The government plans to link all the 1.55 lakh post office branches with IPPB services by the end of this year. Earlier this year, IPPB had launched its pilot operations in Raipur and Ranchi.

What is a payments bank?A payments bank is like any other bank, but operating on a smaller scale without involving any credit risk. In simple words, it can carry out most banking operations but can’t advance loans or issue credit cards. It can accept demand deposits (up to Rs 1 lakh) and offer remittance services, mobile payments/transfers/purchases and other banking services like ATM/debit cards, net banking and third-party fund transfers.
The objectives of setting up of payments banks is to increase financial inclusion by providing small savings accounts and payments/remittance services to migrant labourers, low-income households, small businesses and other unorganised sector entities.

Here are a few unique services offered by the India Post Payments Bank:

Doorstep bankingDoorstep banking service is one of the most distinct features of IPPB, making it very accessible. With an aim to ease access and encourage adoption of new-age banking and payment instruments, IPPB will utilise the services of postmen to offer doorstep banking in rural areas. IPPB’s doorstep banking will offer following services: account opening; cash deposits/withdrawals; money transfers; recharge and bill payments; third-party services like insurance, loans and investments; and other account-related services like updating PAN/nomination details, requesting account statement, issuing standing instructions and QR card issuance.